The Iraqi Central Bank affirms its determination to stabilize exchange rates
The issue of turmoil in exchange rates and the resulting and resulting significant rise in the prices of basic commodities and foodstuffs is still a matter of concern and concern to the Iraqi authorities and ordinary citizens alike, especially with the lack of market response to the decision to raise the value of the dinar against the dollar by the central bank and the government, to 1300. A dinar against one dollar, after it was 1460 dinars for a dollar, and the lack of response was represented in one of its dimensions by keeping the exchange rate parallel to the official price at the ceiling of 1520 dinars to one dollar.
And within the framework of a series of statements made by Iraqi officials to restore exchange rates to their previous state, the Governor of the Central Bank of Iraq, Ali Al-Alaq, affirmed, yesterday, Wednesday, the central bank’s determination to stabilize the exchange rate of the dollar.
Al-Alaq said, to the official news agency, that “the new electronic platform to avoid any penalties imposed on the parties that carry out transfer operations, whether they are banks or others, as it is a protection for the banking sector, the central bank and banks from falling into any problem related to external financial transfers, and this serves all parties.” ».
Regarding the exchange rate of the dollar, which is still high compared to its official rate, Al-Alaq explained that “the responsibility of the central bank is to close the difference in the exchange rate, and our steps are serious and vigorous, and we receive great support from all parties to achieve the goal,” adding that “our discussions with the International Monetary Fund were fruitful.” Very much, and we agreed on programs that serve directly and indirectly to achieve this goal.
In turn, Mazhar Muhammad Salih, the economic advisor to the Prime Minister, said, “The electronic platform imposed by the US Treasury on central bank sales is a security officer for selling the currency.”
Saleh added, in press statements, that “the decrease in the sale of the currency by the Central Bank came due to old accumulations or its rejection by the electronic platform.”
For the first time, the government advisor reveals the percentages of money that are being smuggled to neighboring countries through the currency auction, where he said: “There is a fraud by taking the currency abroad by hiding it by importing materials that do not benefit the Iraqi people,” stressing that “the rate of counterfeiting currency transfers abroad reached 20%.
Saleh promised, “The main reason for the dollar crisis is the lack of control over the borders, which is a major sovereign issue, and it is necessary to control foreign transfers.”
On an issue related to the exchange rate crisis, Iraqi Foreign Minister Fouad Hussein said, yesterday, Wednesday, that the Iraqi delegation in Washington had reached an agreement with US officials regarding the dollar.
Hussein confirmed, in statements to “Voice of America,” that “an agreement was reached with American officials regarding the dollar, oil, gas, electricity, and a number of other issues,” noting that “Iraq imports most of its needs from abroad, and buys needs in dollars, so most of the dollars Go abroad for trade, but there was no organized mechanism to withdraw dollars from the central bank and Iraqi markets ».
The minister explained, “Iraq has taken banking measures, and now there is a mechanism. I see that the currency issue will be resolved gradually, and that the Americans have put in place a mechanism to monitor the withdrawal of the dollar, which affected the price, and this will stabilize step by step.”
Hussein continued, “Iraqi society imports almost everything from abroad, and we only sell oil, and the import needs the dollar, and this is the reason for the exit of the dollar from Iraq, and we did not have a mechanism to regulate the exit of the dollar, and we put in place a mechanism to regulate the currency and control the movement of the dollar.”